EU seriously considering eliminating all financial support for biofuels
The European Comission (EC) is considering new changes in the Common Agricultural Policy (CAP) that could remove all financial aid to biofuel crops. According to a working draft, current biofuel demand is so high that financial support is no longer needed. The EU's next CAP will be introduced May 20th. That's when the 27 EU members will start discussing how to change the policy. It's going to be a long discussion.
The current EU financial aid for biofuels is 45 EUR per ha, as long as the production is backed up by a contract between the farmer and the fuel manufacturer. However, this amount was limited only for the two first 2 million ha, and the EU reduced its support to 30 EUR/ha. Even without the EU backing, the EU still wants to replace at least 10 percent of fossil fuels with biofuels by 2020.
[Source: EFE via Econoticias]
Reader Comments (Page 1 of 1)
rgseidl 7:36PM (3/05/2008)
I'm all for eliminating subsidies, especially since most EU governments are choosing to increase biofuel use by changing the fuel formulations, i.e. forcing refineries to produce only blends. This creates a captive market and sufficient incentive for farmers in Southern Europe and the Black Sea countries to switch to benign biofuels such as biomethane and algal oil.
Tariffs should be levied against imports of biofuel feedstocks or finished fuels from countries that remote sensing shows are clear-cutting forest land to produce them. Countries that switch their entire production to benign biofuels and do not act as intermediaries for third parties subject to tariffs would themselves be exempt.
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Tim 10:12AM (3/06/2008)
Like a child who has reached maturity it is now time for the EU to set the biofuel market FREE and reduce consumption taxes so that it can grow and flourish on its own.
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